Upon termination or expiration of the Del Taco agreement, what must the franchisee immediately cease?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately cease to operate the Restaurant, and shall not thereafter, directly or indirectly, represent to the public or hold Franchisee out as a present or former franchisee of Del Taco.
- 14.1.2 Cease Use of Proprietary Marks.
Franchisee shall immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System, the mark "Del Taco" and all other Proprietary Marks and distinctive forms, slogans, signs, symbols, and devices associated with the System.
In particular, Franchisee shall cease to use all signs, advertising materials, displays, stationery, forms, and any other articles that display the Proprietary Marks, remove all such articles and/or permit Del Taco to enter the Restaurant and remove or permanently cover all signs or advertisements identifiable in any way with Del Taco's name or business, at Franchisee's expense.
- 14.1.3 Cancellation of Assumed Names.
Franchisee shall take such action as may be necessary to cancel any assumed name or equivalent registration which contains the Proprietary Mark "Del Taco" and all other Proprietary Marks, and/or any other service mark or trademark, and Franchisee shall furnish Del Taco with evidence satisfactory to Del Taco of compliance with this obligation within five (5) days after termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 58–59)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease certain activities. Specifically, the franchisee must cease operating the restaurant and is prohibited from representing themselves as a current or former Del Taco franchisee. This means the franchisee can no longer conduct business under the Del Taco name or system.
In addition to ceasing operations, the franchisee must immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Del Taco system. This includes discontinuing the use of the "Del Taco" mark and all other proprietary marks, distinctive forms, slogans, signs, symbols, and devices associated with the system. The franchisee is required to remove all signs, advertising materials, displays, stationery, forms, and any other articles that display the proprietary marks. If the franchisee fails to do so, Del Taco has the right to enter the restaurant and remove or cover these items at the franchisee's expense.
Furthermore, the franchisee is obligated to cancel any assumed name or equivalent registration that contains the proprietary mark "Del Taco" or any other service mark or trademark. Evidence of compliance with this cancellation must be provided to Del Taco within five days after the termination or expiration of the agreement. These obligations ensure that the franchisee completely disassociates from the Del Taco brand and system upon termination or expiration of the agreement, protecting Del Taco's brand identity and proprietary information.